EXPLORE KNOWLEDGE BASE
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CERI Knowledge Base
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About the CERI knowledge base
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Introduction to Australia’s electricity markets
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Australian consumer insights
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CER technical and interoperability standards
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Connecting a customer to an electricity network
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Connecting a generator to a distribution network
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Utility interconnection (CSIP-AUS)
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Dynamic network export and generation control schemes
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Network load control schemes
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Network tariffs and network support services
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Participating in the National Electricity Market
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Participating in a frequency control market
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Participating in the RERT
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Participating in the Wholesale Electricity Market (Western Australia)
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Participating in the I-NTEM (NT)
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Cyber security and data privacy arrangements
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Consumer protection frameworks
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The Voluntary Scheduled Resource Incentive Mechanism
Last Updated on 6 August 2026
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The Voluntary Scheduled Resource (VSR) Incentive Mechanism (VIM) is new market arrangement to incentivise normally non-scheduled resources, including sub-5 MW CER, to voluntarily take on limited scheduling obligations in exchange for operational and/or financial incentives. The mechanism aims to improve AEMO’s visibility and predictability of non-scheduled resources without requiring full scheduled status.
Key points
- The mechanism is intended for price-responsive resources that are not already required to participate in central dispatch.
- Market customers and integrated resource providers, including small resource aggregators, may nominate eligible resources.
- Participants will voluntarily accept defined bidding, availability and dispatch obligations.
- Incentive payments are intended to offset initial participation and compliance costs.
- Funding will be allocated through competitive tender processes.
Who can participate in the VSR Incentive Mechanism?
The VIM is designed for resources that are not already required to be scheduled under the NER. It is expected to be open to any market customer (such as an electricity retailer) or SRA (including SGU and BDU aggregators). Under the mechanism, participants will continue to be exposed to spot market prices but with additional adherence to defined bidding, telemetry, availability, and dispatch conformance standards.
The AEMC has approved a budget of $50m to AEMO to encourage market participant uptake during a trial phase of the scheme from 2026 to 2031. This funding will be used for:
- Short-term incentive payments to offset onboarding and compliance costs
- Competitive tender rounds to allocate funding based on merit and system value. A person wishing to participant in a VSR tender process will be called an Intending Voluntarily Scheduled Resource Provider (Intending VSRP), and a VSRP once registered.
Technical requirements are expected to align with existing obligations for small scheduled and semi-scheduled resources, scaled for sub-5 MW CER. Participants will need to meet minimum telemetry, dispatch conformance, and availability standards, though the thresholds (e.g., resolution, latency) will be less onerous than for fully scheduled units.
VIM arrangements currently under development and the first trial is expected to commence from early to mid-2027.